Purpose of the case: To illustrate how you can arrive at Acceptance Sampling Plans that will reduce incoming raw material defectives by using the DECIDE DSS and the decision variable summary.
Post your answers in the comment section below. Attack this case as a team, or individually.
We will post the answers to these questions after you have handed in your deliverables for Module VI. Enjoy!
In the first period of play two firms were considering acceptance sampling with their orders for 900,000 square feet of RM#1. Both used an AQL of .02 and LTFD = .10.
PLAN 1: Firm 1 opted for n= 15 and c= 0
PLAN 2: Firm 2 opted for n = 20 and c = 1
Use the Web-DECIDE software and decision variable summary to aid you in answering the following questions:
- Which plan will have the smallest sampling cost? By how much?
- Which plan will have the largest number of charges allocated to the Firm for rejecting good lots?
- Which plan has the largest beta error (i.e. Consumer Risk) associated with poor quality LTFD?
- If your supplier has been sending you about 5% defectives, which plan yields the best average outgoing quality level?
- Which plan do you think will yield the lowest Fractional Defective after Sampling?